However, this situation would make the company incur more loss next year, which is about negative $ 293,586. In the mean time, Barb Shepard, the company’s owner, wants to sell the company soon, and she knows a purchase price would be determined by three main factors: the absolute level of profits, the rate of growth in profits, and future potential growth in the market. Barb Shepard also wants to reduce bank debts as soon as possible. Therefore, the company needs new strategic initiatives very much to improve operating profitability and move forward next year. Each of three vice presidents has rendered a separate and distinct strategic initiative, and they are “Introduce a new product”, “Increase promotion”, and “Raise prices and cut costs” respectively.
One of the biggest disadvantages is not being able to make connections as easy as the copper. Fiber optic cables have a core as fine as a human hair, making it extremely difficult to splice. Copper cables are obviously not going to be around forever with the fiber optics being so futuristic, but they still have advantages over the fiber. Copper is very easy to work with. When making connections it is so much easier to splice the copper cable than it would be for the fiber.
Explore how entrepreneurs make financing decisions when they are faced with timing issues and low bargaining power versus VCs. Mindersoft Stephen R. Chapin Jr., the CEO of a new startup, Mindersoft, Inc., must evaluate an offer from a venture capital firm in March 1997. The firm, Novak Biddle Venture Partners, offers to invest $2.0 million for 40 percent of the company resulting in a $5 million post-money valuation for the firm. He is concerned that the valuation offered by the venture capitalist is too low. He believes that the premoney valuation of the company should be at least $10 million based on the potential profitability of the company and the successful efforts to date in lining up several key sponsorships with national retailers.
In-depth research and analysis needs to be conducted on other companies that have created similar successful programs. They need to determine what the breakeven point will be, and when these new products will start generating a profit and then make the decision on whether or not it’s worth the investment. Issue 5 Lack of planning CanGo is in rapid development, but at the same time lacks of any sort of planning. CanGo's management team cannot seem to reach a viable solution for the future development of the company. Recommendation 5 CanGo needs to make a comprehensive analysis and then decide on a long-term development plan.
Question 1 Part a. A capital budgeting process is required in order to determine the purchase or not of a new computer system. The data forwarded to the CFO from the Controller and Treasurer can be summarized as follow: |Savings (Accounting Department) | $60,000.00 | |Cost of the new computer system |($50,000.00) | |Interest (Project financing cost) |($10,000.00) | |Net savings | 0,00 | A quick analysis shows that the project is in a neutral situation with potential benefits to other departments that were not included by the Controller. This scenario could lead the CFO to approve the project. However, several areas require a deeper
Compared with other non-precious metals, copper wires can handle a wider load of electrical power, allowing it to use less insulation and armoring. They have high resistance to heat, eliminating most issues of overloading. Copper wires are also resistant to corrosion. Although patina, a tarnish produced by oxidation, might be present, the material will not lose functionality. Malleability and Ductility Copper has a high ductility, allowing wires thinner than human hair strands.
Thirdly, the stock option which intend to provide tremendous potential return to the founder of each Internal Venture, however, if the stock price of Telecam tumble down, the stock option will no longer an effective incentive to the founder member. Lastly, as the internal venture can be merged with Wireless division, the people and culture in Internal Venture (Two years separation could be a big difference) might not match to the current structure, culture and current people in Wireless division. It’s easy to do in term of structure but it would take a
But there are still a possibility that problems can rise which could have a massive effect on the business if they are left alone. But as said above as the budget can be monitored on a monthly basis it allows the business to change how the business performances to give them a chance to save the business before it goes bankrupt. But by setting a budget and monitoring the budget it gives the business an idea of what the expected to earn and buy each month at at the end of the year as a whole. Also as said above by monitoring the budget it gives the business an idea of where the business is in relation to the forecasted
Hydroelectric plants may be able to reshape water flows to more closely match daily and seasonal system energy demands. Hydroelectric plants have many advantages but even though they do sound perfect they still have some disadvantages. One of the main advantages of hydroelectric plants is since no fuel is burned there is minimal pollution. Today pollution is a main argument that is harming our environment. Pollution is causing the atmosphere to decay and is helping generate global warming.
Mark Mazue a Treasury official, said the administration wanted the extra time (Financial Times). Mark Mazue also summed it up by saying this would give companies more time to adapt their health coverage and with reporting. The change does not impact individuals this year, however; it will impact them next year if they do not find coverage. They will face a penalty if they do not acquire insurance.